Stock Pick

Author: openjargon

  • Sweden’s early warning plane will be a boost for Ukraine’s air defenses and F-16 fighters

    Saab 340 Erieye AEW&C model
    A model of the Saab 340 Erieye AEW&C (Airborne Early Warning and Control) aircraft on November 3, 2015.

    PORNCHAI KITTIWONGSAKUL/AFP/Getty Images

    • Sweden will send an ASC 890 aircraft to Ukraine in a $1.23 billion aid package.
    • The airborne early warning plane enhances Ukraine's range against airborne and maritime targets.
    • Sweden will also includes tanks, artillery ammunition, and more in its aid package.

    Sweden will be delivering an ASC 890 airborne early warning and control aircraft to Ukraine, stepping up its alert system and range, as part of its $1.23 billion aid package announced Wednesday.

    Pål Jonson, Sweden's minister of defense, said the aircraft will provide Ukraine "with a new capability against both airborne and maritime targets."

    With the contribution of the ASC 890, Jonson added that Ukraine's "capability to identify targets at long range will be strengthened."

    The ASC 890 aircraft, also known as the Saab 340, is an Airborne Early Warning and Control airplane equipped with a large radar that looks like a fin mounted above its fuselage. It can scan for aerial threats out to 250 miles, giving Ukraine a capability similar to the A-50 AEW&C planes Russia has used to guide its air defenses and fighter aircraft.

    The ASC 890 can operate alongside F-16 fighter jets, National Advanced Surface-to-Air Missile Systems, and other air defenses, acting as a "force multiplier" by spotting and relaying targets to armed aircraft or ground-based missile batteries.

    The aircraft's radar will also be able to detect drones and cruise missiles, according to Jonson.

    Belgium made a commitment on Tuesday to send Ukraine 30 American F-16s over the next four years on the condition that they wouldn't be flown over Russia. Other countries have pledged Ukraine a total of roughly 85 F-16 jets.

    Sweden and other allies such as Netherlands, Denmark, and Norway have also promised to send Ukraine F-16 jets.

    President Volodymyr Zelenskyy has emphasized that the contribution of F-16s will help fortify Ukraine's position. Future missions to defend Ukraine's air space or attack ships in the Black Sea may be guided by targeted data relayed from an ASC 890.

    Ukraine is currently tasked with defending its lines as Russia has bombarded them with deep strikes.

    Sweden also plans to provide Ukraine with armored personnel carriers, Advanced Medium-Range Air-to-Air Missiles, and artillery ammunition along with other resources as part of its largest aid package yet.

    Read the original article on Business Insider

  • Israel gave Biden his worst news yet: the war in Gaza could last past the election

    Joe Biden
    President Joe Biden is facing pressure from young progressives over his support of Israel's war in Gaza.

    Sean Rayford/Getty Images

    • Israel expects its war against Hamas to last months more — past the US election.
    • That could keep the war in Gaza at the top of voters' minds.
    • Biden's support for Israel is causing him to lose traction among young voters, polls show.

    A top Israeli official says the war in Gaza should last at least through the end of the year.

    And that's potentially terrible news for Joe Biden's presidential campaign, which has been struggling to shore up support among young voters who criticize his support of Israel.

    Israel's National Security Adviser Tzachi Hanegbi said in an Israeli public radio interview on Wednesday that his country is "expecting another seven months of fighting" to achieve its stated goal of destroying Hamas, the Associated Press reported.

    Hanegbi said the cabinet knew from the beginning that the war would be long and that 2024 would be "defined as a year of combat," CNN reported.

    "You need to have patience and know how to stand strong," Hanegbi said, according to CNN. "This resilience is what has allowed this nation to survive for 75 years and even for 3,000 years before that. Just don't use a stopwatch on ourselves or set ultimatums."

    That'll mean that the Israel-Gaza war will remain in the headlines — and potentially cost him votes come November.

    Biden has struggled to gain traction among young Americans — the majority of whom oppose his pro-Israel stance, polling shows.

    A recent CNN poll conducted by SSRS found that 81% of voters under 35 disapprove of Biden's handling of the war in Gaza. That base of young voters could be critical to winning the presidential election.

    It's not just polling that's shown young voters' dissatisfaction with Biden. Thousands of students protesting the war in Gaza at college campuses across the country have taken issue with Biden's support of Israel, which they allege amounts to a US-sanctioned genocide against the Palestinian people.

    Some have even taken to calling him "Genocide Joe," Politico reported.

    Earlier this year, a movement of uncommitted Democratic voters withheld their votes for Biden over his support of Israel.

    In Michigan's February primary, more than 100,000 voters in the state chose "uncommitted" in protest, raising the specter that they could hold out in November.

    The war in Gaza rages on

    This month, Israel intensified its assaults into Rafah, a major southern Gazan city.

    Just last week, the International Court of Justice ordered Israel to halt its operation in Rafah, where more than a million Palestinians have been sheltering, the AP reported. But Israel is plowing ahead.

    On Sunday, an Israeli airstrike killed dozens of Palestinians in an encampment outside Israel's evacuation order.

    Israeli officials have said they were targeting Hamas militants, and Israeli Prime Minister Benjamin Netanyahu called the civilian deaths a "tragic mistake."

    The deadly strike has drawn international outrage; a White House spokesperson said this week that the Biden administration hasn't changed its stance on Israel since the attack.

    Since Hamas attacked Israel on October 7, 2023 — leaving hundreds of civilians dead and sparking a fierce Israeli response with airstrikes that have killed tens of thousands of Palestinians — Biden has gone back and forth with Israel over its military operations.

    Though Biden has repeatedly pledged his support for Israel, he has also said that Israeli attacks on Gaza were "over the top" and that the starvation of innocent people has "got to stop."

    He's called for a ceasefire deal between Hamas and Israel and briefly halted some munitions shipments to Israel, but since then, the US has signaled it would send other military aid to the Jewish state.

    Biden seems like he'll continue to straddle the line between defending Israel and condemning attacks on civilians — and that may cost him reelection.

    Read the original article on Business Insider

  • Does Vanguard Australian Shares Index ETF (VAS) pay fully franked dividends?

    Man holding fifty Australian Dollar banknote in his hands, symbolising dividends, symbolising dividends.

    The Vanguard Australian Shares Index ETF (ASX: VAS) is a popular way to indirectly invest in S&P/ASX 300 Index (ASX: XKO) shares. Plenty of Aussies may like to receive dividends with franking credits from ASX 300 shares.

    Exchange-traded funds (ETFs) allow investors to buy a portfolio of businesses in just one investment. ETFs act as a conduit to pass on the dividends they receive to unitholders of the ETF.

    There are plenty of businesses within the ASX 300 that pay fully franked dividends including Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and Telstra Group Ltd (ASX: TLS). Does that mean the VAS ETF pays fully franked dividends too?

    Franking level of VAS ETF dividend payouts

    The Vanguard Australian Shares Index ETF dividend yield is dictated by the yield of the underlying holdings, leading to an overall yield from all of the businesses. For example, the high dividend yield of National Australia Bank Ltd (ASX: NAB) pushes up the VAS yield and the low yield of CSL Ltd (ASX: CSL) shares hurts the ETF’s yield.

    According to Vanguard, the VAS ETF had a dividend yield of 3.7% at the end of April when taking into account all of the dividend yields within the ASX 300.

    The franking level of the Vanguard Australian Shares Index ETF distributions is influenced by the franking level of its holdings’ dividends.

    Some ASX shares within the VAS ETF portfolio don’t pay fully franked dividends, so the ETF is unable to pay fully franked distributions. Examples of unfranked income payers include CSL, Goodman Group (ASX: GMG), James Hardie Industries plc (ASX: JHX) and Resmed CDI (ASX: RMD).

    Every three months, the fund pays out the dividends it has received, so the franking credit level varies depending on the ASX shares.

    Latest distribution

    Let’s briefly look at the latest distribution from the VAS ETF, with Vanguard providing a tax estimate.

    For the period ending 31 March 2024, the quarterly payment was 84.79 cents per unit. Of this, 66.3 cents were franked dividends and 9 cents were unfranked dividends. The rest of the distribution comprised other forms of income.   

    Vanguard reported 29.33 cents of franking credits per unit were attached to the distribution, which are an additional return to investors and can be accessed when investors do their FY24 tax return.

    The next distribution will depend on what dividends the VAS ETF receives from its investments.

    The post Does Vanguard Australian Shares Index ETF (VAS) pay fully franked dividends? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Vanguard Australian Shares Index Etf right now?

    Before you buy Vanguard Australian Shares Index Etf shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Vanguard Australian Shares Index Etf wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goodman Group, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed and Telstra Group. The Motley Fool Australia has recommended CSL and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • 5 things to watch on the ASX 200 on Thursday

    On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a very disappointing session after inflation came in hotter than expected. The benchmark index sank 1.3% to 7,665.6 points.

    Will the market be able to bounce back from this on Thursday? Here are five things to watch:

    ASX 200 expected to fall again

    The Australian share market looks set for another tough session on Thursday after a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 50 points or 0.65% lower this morning. In the United States, the Dow Jones was down 1.1%, the S&P 500 fell 0.75% and the Nasdaq tumbled 0.6%.

    Oil prices fall

    ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a tough session after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1% to US$79.01 a barrel and the Brent crude oil price is down 1.1% to US$83.30 a barrel. This decline was driven by concerns over US gasoline demand.

    BHP’s Anglo American takeover is off

    The BHP Group Ltd (ASX: BHP) share price will be on watch after Anglo American (LSE: AAL) refused to grant the miner an extension for its $75 billion takeover approach. In response to the news, BHP revealed that it “will not be making a firm offer for Anglo American.” BHP CEO, Mike Henry, commented: “While we believed that our proposal for Anglo American was a compelling opportunity to effectively grow the pie of value for both sets of shareholders, we were unable to reach agreement with Anglo American on our specific views in respect of South African regulatory risk and cost and, despite seeking to engage constructively and numerous requests, we were not able to access from Anglo American key information required to formulate measures to address the excess risk they perceive.”

    Gold price drops

    It looks set to be a poor session for ASX 200 gold miners such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.9% to US$2,335.5 an ounce. The precious metal came under pressure after the US dollar and treasury yields strengthened.

    Buy Qantas shares

    Qantas Airways Limited (ASX: QAN) shares could be dirt cheap according to analysts at Goldman Sachs. This morning, the broker has reiterated its buy rating and $8.05 price target on the airline operator’s shares. It said: “The discounted valuation versus peers and its own history implies that the market is pricing in a trade off between investment (fleet and customer) and capital returns (dividends & buybacks), which we view as a buying opportunity.”

    The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bhp Group right now?

    Before you buy Bhp Group shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bhp Group wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Do Wesfarmers shares pay a decent ASX dividend?

    Woman smiling with her hands behind her back on her couch, symbolising passive income.

    Wesfarmers Ltd (ASX: WES) shares have excelled at delivering capital growth in the past year, boasting a 30% increase over the 12 months, as shown in the chart below.

    Capital growth is only one element of a shareholder’s ASX returns, though – dividends also play their part.

    While share prices move daily depending on what people are willing to pay, dividends are typically much more consistent. That’s because they are decided by a company’s board of directors and influenced by how much profit the business is generating.

    Many investors prefer to focus on dividend returns because they are a ‘real’ return without requiring share sales. Owning a solid, dividend-paying stock may also help investors sleep easier at night.

    With that in mind, can Wesfarmers shares tick the ASX dividend box?

    Generous dividend payout ratio

    A company needs to make a profit before it can pay a dividend. Wesfarmers has been making a profit for decades, so there is no problem there.

    Leadership must decide how much of the company’s profit it will pay out as a dividend. This metric is called the dividend payout ratio. Paying out 100% of the net profit after tax (NPAT) may not be sustainable if the business needs to reinvest in its operations to sustain/grow earnings in the future.

    Ideally, a business is able to balance rewarding shareholders in the short term with growing the business in the long term.

    In the FY24 first-half result, the business reported it generated earnings per share (EPS) of $1.258 (up 3.4% year over year). This enabled Wesfarmers to pay an interim dividend per share of 91 cents, an increase of 3.4% compared to the FY23 interim dividend.

    That HY24 dividend represented a dividend payout ratio of 72% of profit, which I believe strikes the right balance between dividend payments and funding growth.

    Wesfarmers is investing in its businesses, such as expanding the Kmart brand Anko to international markets, including Canada. The ASX share is also part of a lithium project at Mt Holland, which is utilising capital to get the mine operational.

    The last two dividends declared by Wesfarmers total $1.94 per share, which equates to a fully franked dividend yield of around 3% and a grossed-up dividend yield of 4.4%. That’s not bad, but it’s not the biggest yield around.

    What are the chances of owners of Wesfarmers shares getting larger ASX dividends in the future?

    Intention to grow the dividend

    Wesfarmers says it wants to deliver long-term shareholder returns, with part of that being the dividend payout. As part of its capital management, the company said:

    With a focus on generating strong cash flows and maintaining balance sheet strength, the Group aims to deliver satisfactory returns to shareholders through improving returns on invested capital.

    As well as share price appreciation, Wesfarmers seeks to grow dividends over time commensurate with performance in earnings and cash flow.

    The estimate on Commsec suggests the Wesfarmers dividend can grow to $2.12 per share in FY25 and $2.36 per share in FY26. If that happens, the Wesfarmers grossed-up dividend yield could be 5.3%.

    With a decent starting dividend yield, potential dividend growth in the next two years and a portfolio of solid businesses like Bunnings, Kmart, and Officeworks, I’d rate Wesfarmers shares as a solid option for ASX dividends.

    The post Do Wesfarmers shares pay a decent ASX dividend? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Wesfarmers Limited right now?

    Before you buy Wesfarmers Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Wesfarmers Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Donald Trump, Elon Musk, and Nelson Peltz met for breakfast, where they criticized Joe Biden and brought along their sons Barron, X, and Diesel

    Elon Musk on a red carpet.
    Elon Musk brought his son X to a meeting with Donald Trump and Nelson Peltz.

    Tayfun Coskun/Anadolu via Getty Images

    • Elon Musk had breakfast with Donald Trump and Nelson Peltz in March, The Wall Street Journal reported.
    • The men shared gripes about Joe Biden's performance as president and talked about voter fraud, .
    • It's one example of how much relations between Musk and Trump have warmed up.

    You can trace the warming relationship between former President Donald Trump and Elon Musk to some eggs, bacon, and fruit on a Sunday morning.

    The two men met with Nelson Peltz in March at Montsorrel, Peltz's estate in Palm Beach, Florida, the Wall Street Journal reported Wednesday. The three talked about this fall's presidential election and took similarly critical stances on President Joe Biden's administration, according to the Journal.

    The meeting was first reported by the New York Times in March. Trump sought major donations to his campaign from multiple GOP donors who were there, the Times reported.

    Also on the agenda was a "data-driven" project to combat voter fraud that Peltz and Musk have been discussing. They first mentioned the project to Trump at the breakfast meeting, the Journal reported. Voter fraud in the US is rare. However, it has become an interest of Trump since he falsely claimed that he won the 2020 presidential election.

    The three billionaires also brought their sons with them to the breakfast. Diesel Peltz, Nelson's son, was at the event, as were Barron Trump, the former president's 18-year-old, and X, Musk's toddler, the Journal reported.

    The meeting is one example of an apparent turnaround in the relationship between Musk and Trump. As recently as a few years ago, Musk called Trump a "bullshitter."

    Now, Musk is under consideration for a role advising Trump if he is re-elected this November, the Journal reported.

    "President Trump will be the only voice of what role an individual plays in his presidency," Brian Hughes, a spokesman for the Trump campaign, told the Journal in response to the report about the breakfast meeting and a potential role for Musk at the White House.

    Representatives for the Trump campaign and Musk did not immediately respond to requests for comment from Business Insider.

    Read the original article on Business Insider

  • Own Liontown Resources shares? Here’s when it will start producing lithium

    A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.

    If you own Liontown Resources Ltd (ASX: LTR) shares then you may be aware that a major milestone is on the horizon.

    That milestone is the commencement of lithium production at the Kathleen Valley Lithium Project in Western Australia.

    In fact, the company has started to describe itself as the “world’s next major lithium producer.”

    But when will that actually happen? Let’s now see what stage Liontown is at in respect to the development of the Kathleen Valley project.

    When will Liontown start producing lithium?

    Earlier this month, Liontown announced that it had executed an Engineering, Procurement and Construction (EPC) contract with GR Engineering Services Ltd (ASX: GNG).

    This $71 million contract is for the delivery and commissioning of the paste plant facility to support the underground mining operations at Kathleen Valley.

    Management notes that the Paste Plant will include two trains capable of producing up to 160m3 of paste per hour. It has been designed to accommodate future expansion of mining operations to 4Mtpa.

    Commenting on the contract, Liontown’s CEO, Tony Ottaviano, said:

    We are pleased to award the contract for the design and construction of the Paste Plant which will support and further de-risk the planned underground production rates at Kathleen Valley. GRES has designed and constructed multiple paste plant facilities throughout Western Australia and the GRES team has mobilised and commenced initial works at Kathleen Valley.

    This important contract means that Liontown is potentially now just a matter of weeks away from producing lithium at Kathleen Valley.

    A presentation this week confirms that the project is more than 90% complete on an earned value basis and its process plant is 94% complete. In light of this, Kathleen Valley is on track for its first production in mid-2024. And given that we are rapidly approaching the middle of the year, this means that production won’t be far off.

    Liontown is now working on its Dry Plant, including primary crushing through to fine ore bin. Its Wet Plant commissioning has also commenced with SAG mill, air/water service, and floatation.

    Should you buy Liontown shares?

    Bell Potter thinks investors should be taking advantage on recent share price weakness.

    It currently has a speculative buy rating and $1.85 price target on Liontown’s shares. Based on its current share price, this implies potential upside of 36% for investors over the next 12 months.

    The broker is very positive on the potential of Kathleen Valley Lithium Project. It said:

    LTR’s 100% owned KV lithium project remains highly strategic in terms of its stage of development, long mine life and location. LTR has offtake contracts with top tier EV and battery OEMs (Ford, LG Energy Solution and Tesla). Hancock Prospecting has a 19.9% interest in LTR. LTR is an asset development company; our Speculative risk rating recognises this higher level of risk.

    The post Own Liontown Resources shares? Here’s when it will start producing lithium appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Liontown Resources right now?

    Before you buy Liontown Resources shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Liontown Resources wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Why invest? Here’s what’s motivating baby boomers and young Australians

    A kid and his grandad high five after a fun game of basketball.

    New research shows 85% of Australians are investing money outside their superannuation funds.

    This makes sense given the one big drawback of superannuation is that you cannot access your money until you reach your preservation age. For Gen Xers, Millennials and Gen Zs, that means 60 years.

    Saving for retirement is obviously the key goal of superannuation investment. However, new research shows that most Australians who invest outside their super do so for the same reason.

    Let’s investigate.

    Why invest outside superannuation?

    An investor survey by financial advisory firm Findex shows Australians are investing outside their superannuation for many reasons.

    The top reasons relate to long-term goals, such as planning for retirement (54%) and building wealth (53%).

    Saving for emergencies is the third most common reason (43%) and a key recommendation of The Fool.

    Findex also found that 35% of investors were saving for a property purchase, comprising 16% saving for their first home and 19% saving for a real estate investment.

    Other motivations for investing outside super include supporting children or other family members (29%), reflecting the rising role of the Bank of Mum and Dad in helping young people buy their first homes.

    Amid today’s high interest rates and inflation, paying off a mortgage or other debt is a motivator for 28% of respondents, as is preserving their wealth from the impacts of inflation (26%).

    And then there’s the fun stuff.

    About 27% of respondents said they were saving for a major purchase outside property, like a car or a holiday. About 22% said they were investing for the simple enjoyment of it.

    Another 14% are gathering funds to pay for a milestone occasion in their lives, such as their wedding.

    But when the data is broken down by generation, we see different motivations at play.

    Generational differences in the motivation to invest

    Baby Boomers (born 1945-1964)

    By far, the primary motivation to invest outside superannuation is planning for retirement (80%). No other generation is more concerned with retirement planning than the baby boomers. The next biggest motivations are building wealth (51%) and supporting their children or other family members (25%).

    Gen Xers (born 1965-1980)

    Gen Xers are also investing mainly to plan for their retirement (66%) and build wealth (50%). This age cohort is also the most concerned with supporting their children or other family members (33%).

    Millennials (born 1981-1996)

    More than any other generation, Millennials are motivated to invest outside superannuation to build wealth (55%), save for emergencies (50%), and pay off their mortgage or other debt (32%). They’re also targeting real estate investment more than any other generational group (28%).

    Gen Zs (born 1997-2009)

    The youngest cohort of Aussies is primarily motivated to invest to build wealth (52%) and save for emergencies (46%). They are the generation most likely to be saving for a major purchase outside property, like a car or holiday (41%). They’re also the biggest age group saving for their first home (42%) or a milestone occasion (24%).

    Gen Zs are also the most concerned with preserving their wealth against inflation (29%).

    This follows new data from CommBank showing young people aged 25-29 years have cut their spending more than any other age group. They spent 3.5% less over the past year compared to Australians aged over 75 who spent 6.5% more. Gen Zs also invest for enjoyment more than any other age group (26%).

    The post Why invest? Here’s what’s motivating baby boomers and young Australians appeared first on The Motley Fool Australia.

    Maximise Your Super before June 30: Uncover 5 Strategies Most Aussies Overlook!

    With the end of the financial year almost upon us, there are some strategies that you may be able to take advantage of right now to save some tax and boost your savings…

    Download our latest free report discover 5 super strategies that most Aussies miss today!

    Download Free Report
    *Returns 28 May 2024

    More reading

    Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • I spent thousands renovating my kitchen and went over budget — but there are still 3 things I wish I’d done differently

    Renovated kitchen with blue cabinets and no backsplash, walls not finished painted
    Has anyone had a good experience renovating their kitchen?

    Matt Ng

    • I had my kitchen renovated last year. It cost thousands of dollars, and we still went over budget.
    • I wish we had added handles to our cabinets and installed more outlets.
    • Next time, I'm also double-checking measurements to make sure we're making the most of our space.

    My partner and I decided to renovate our kitchen last January. We had a baby due in June, so we needed to get it done fairly quickly.

    And with the average kitchen remodel costing about $45,000, we also wanted to make sure we were getting our money's worth by creating a space we were really happy with.

    After picking a company to work with and going through a design consultation, we were all hands on deck and ready.

    However, during the renovation, we eventually went over budget and realized we should have done a few things differently.

    Skipping cabinet handles hasn't been worth it

    Fingerprints on dark blue cabinets
    Our cabinets seem to always have fingerprints and smudges on them.

    Matt Ng

    We weren't blown away by any of the handle designs offered by the company doing our renovation. Many were either too traditional or too modern — we wanted a blend of both without wandering too far in either direction.

    We eventually opted for a handleless, matte design with integrated grooves on the doors and drawers. This was a big mistake.

    The panels are handprint magnets, and the matte finish means they're perpetually stained with greasy finger smears that are tricky and bothersome to remove.

    We should've installed more outlets

    Toaster, microwave, kettle, and other appliances. crowded on counter
    A lot of our appliances are crowded in one space.

    Matt Ng

    First-world problems, I know, but eight power outlets don't quite cut it for a medium-sized kitchen these days, especially when we have so many appliances that must be plugged in.

    After the air fryer, rice cooker, microwave, kettle, wine chiller, and coffee machine are plugged in, there's not much room for anything else, especially because our outlets are in the corners of our kitchen and not spread out.

    It's difficult to move our bulkier appliances to plug in other items, too. If we'd planned ahead and added another pair of outlets in the middle of our work surface, we'd have a nice space for our stand mixer or food processor.

    However, the unexpected cost of installing a new circuit board and wiring for the range cooker made us reluctant to add anything else to our tab.

    Now, we're having to juggle groups of appliances in either corner of our kitchen.

    Some cabinets were smaller than we expected, which led to wasted space

    View of
    We weren't able to optimize our space as well as we'd hoped.

    Matt Ng

    We utilized a few smart storage solutions for the kitchen, including a LeMans shelf that hides in the hard-to-access corner cabinet and pulls out for better accessibility.

    However, one error we made was not comparing the depth of the new cupboards with our old units.

    Some of the new cupboards are actually not as deep as our old ones, and with the range cooker taking up so much real estate, it feels like we've gained space in some areas of the kitchen but lost it in others.

    Ideally, we should've double-checked the measurements before committing to the plan. If we had, we might've been able to utilize some space that's wasted now.

    Overall, we learned a lot that we can take into our next renovation

    Wood kitchen with range in wall next to image of black range next ot midnight-blue cabinets in renovated kitchen
    Our kitchen before (left) had some issues, and our kitchen now (right) isn't quite perfect.

    Matt Ng

    I wished we had the time and space to shop around more, as we didn't feel the consultant we worked with provided the ideas to really make smarter use of our kitchen space.

    We weren't even asked how we wanted the walls, which were left bare. So when the kitchen was finished, it wasn't actually done. We still needed to add paint or a backsplash of tile.

    With all that said, we still adore our kitchen, not least our excellent range cooker and new flooring — our old slate tiles were hard, uncomfortable, and horrible to clean.

    We also love the color scheme (midnight blue is popular these days), and our kitchen looks so much lighter and modern now.

    Since it was our first kitchen renovation, we're a little more armed with experience and the pitfalls should we ever need to do a second. Let's just hope that's not for quite some time.

    Read the original article on Business Insider

  • Do yesterday’s inflation numbers mean interest rates are set to rise?

    A man leans forward propped on his elbows as he holds his clasped hands to his mouth in a worried pose as he gazes at his computer screen in a home setting.

    Yesterday, the S&P/ASX 200 Index (ASX: XJO) and most ASX 200 shares were rocked by the latest inflation figures out of the Australian economy, and consequential fears of another hike in interest rates.

    As we covered at the time, these figures showed Australian inflation coming at a hot 3.6% for the 12 months to 30 April 2024, well above expectations of a 3.4% rise.

    When excluding volatile items like fuel and travel, the number was even higher at 4.1%. That’s well above the Reserve Bank of Australia (RBA)’s official 2-3% target band of where it wants to see inflation.

    Thanks to these sobering numbers, ASX shares had a horrid day yesterday, tanking 1.3%. The market consensus over the past few months has arguably been that slowing inflation will eventually result in the RBA lowering interest rates from the current decade-high 4.35% sometime later this year, or perhaps in early 2025.

    With inflation coming in hotter than expected, this conventional wisdom could now be in doubt. So it was no real surprise to see the share market react so negatively yesterday.

    Remember, ASX shares are directly impacted by interest rates, given higher rates attract money away from the stock market into ‘safer’ investments like term deposits and government bonds.

    Australian mortgage holders have already endured one of the steepest interest rate rises in history over the past two years or so. After all, interest rates were still at a record low of 0.1% as recently as April 2022.

    So does yesterday’s inflation figures really mean interest rates might actually rise again, rather than fall, as the markets were expecting?

    Are interest rates going up following the latest inflation numbers?

    Well, unfortunately for anyone with a mortgage or a large loan, one prominent Australian economist thinks that the chances of at least one interest rate hike in 2024 just got stronger.

    Speaking to the Australian Financial Review (AFR) this week, Judo Bank economist Warren Hogan reckons the unexpectedly high numbers we’ve just got a look at could “tip” the RBA’s hand when it comes to raising rates. Here’s what he said:

    These results will test the RBA’s patience… Inflation is not falling back to target with signs that inflation’s underlying ‘pulse’ might be picking up in 2024.

    The RBA was very close to hiking the rate earlier this month. This number could tip them over to raising rates at their next meeting on 18 June.

    As we covered earlier, the cash rate is currently still sitting at 4.35%. But Hogan argues that the RBA might need to set it as high as 5% before it can break the back of inflation.

    Hogan stated that 5% would be “in line with other similar economies’ interest rates… [Yesterday’s] data and ongoing increases in employment suggest this is still the right view”.

    As with most economic projections, anticipating where inflation or interest rates might head to next is no easy task. Plenty of economists have been wrong on rates before (including the former head of the RBA). However, that probably won’t be too reassuring for any mortgage holders today. Let’s see what happens.

    The post Do yesterday’s inflation numbers mean interest rates are set to rise? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in S&P/ASX 200 right now?

    Before you buy S&P/ASX 200 shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and S&P/ASX 200 wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.